No. It’s not required, however the realtors do push towards a sale being buying or selling and can provide helpful advice. However, find a trustworthy lawyer that can review all starting from even your LOI or offering process. In some cases the realtor is unaware of the costs for seller or buyer, which should be taken into consideration during the offer process. Also note that the real estate companies are independently owned and operated regardless of their US or other foreign titles. They are only regulated under CR law as consultants and there are no real estate regulations for realtors. Look for a realtor that is a Costa Rican resident, with years of living here and owns their own property, locally. Hopefully one with a reputation with reoccurring clients and that is bilingual.

This depends on the area, company and price as there is no legal regulation. In cities it is normally 5%, but in tourist areas can be 8% and include the Seller paying VAT of 13% on the commission. This is all subject to negotiation between Seller and Agent. The sales price when higher could be given a lower commission. Feel free to ask us to review your real estate commission agreement.

It’s the value added tax and all services have to pay it, therefore the service provider adds it to the consumer’s cost as it’s paid then to the government. Notary Fees, realtor fees, CPA fees, etc. The service provider doesn’t keep this amount yet pays a professional to account for it. It’s important prior to buying or selling to know the costs you will incur, including VAT.

Law number 8683 of November 19, 2008, created the Solidarity Tax for the Strengthening of Housing Programs (ISO), known as the “Tax on luxury homes”. This tax falls on the value of real estate for residential use, used on a regular, occasional, or recreational basis, including fixed and permanent installations. Every three years, those obliged to pay this tax must present a statement that updates the tax value of the real estate. If it exceeds the value recorded by the Administration, the new declared value automatically modifies the applicable tax base for the fiscal period in which it is declared.

The deadline for payment is January 15, each year.

In order to file the company must be registered for the tax so please let me know if you authorize us to work on the estimation to determine if your home qualifies for it and then you can approve the filing and payment.

Sanctions apply for non-payment of the obligation. In case of not presenting the declaration, the sanction is half the base salary, that is US$861 approximately and if it is filed late, you must pay 1% on each month or fraction of the month on the amount left to cancel.

The applicable interest rate is 12.8%.

Once the property value for the building only is over $275,677 due January of every year. This tax starts at 0.25% to 0.55% on the value of the constructions and portion of the land use for living.

This depends on the purchase price and if it’s lower than the property’s registered value, the property’s value. This last circumstance is rare, but does occur therefore you can’t base the costs without knowing the property’s fiscal value (which is usually lower but best to know first). This excludes, escrow fees, powers of attorney, corporation costs and due diligence costs. For more specifics, please contact us as each transaction is specific to its needs.

The law states that it’s 50/50 unless negotiated otherwise. It’s common to see it done this way or buyer pays all- but rarely does seller pay all as buyer’s lawyer should process the title transfer for their security. One option is 50/50 and ensures both lawyers work hard to complete the deal and Seller isn’t left paying extra fees both to closing lawyer and extra counsel.

You can -but it is then under US jurisdiction if conflict arises with an earnest deposit and can complicate the wire of funds to a seller and the closing team as in CR, the CR escrow is cleared to transact yet a US escrow will have to prove fund origin post closing, possibly delaying registration of title for buyer.

Easily. Remotely or in person a document is signed and while corporate tax and filings are current, should be dissolved quickly. Make sure all services to the buyer are transferred first, all your bank accounts and. utilities are settled and you have no automatic bank payments. We can assist to review all of the above.